Question

distinguish between fixed capital and working capital “point wise” for (3 marks)​

Answer 1

•Investing capital in the long term assets of an enterprise.

Working capital is the capital invested in the current assets of an enterprise.

•Fixed capital is Used to acquire non-current assets for the company.

Working capital is Used to acquire current assets for the company.

•Fixed capital is not at all liquid.

Working capital is highly liquid.

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Answer 2

Explanation:

>>> Fixed Capital :-

• Investing capital in the long term assets of an enterprise.

• Used to acquire non-current assets for the company .

• Fixed capital is not at all liquid Working capital is highly liquid.

• Conversion to cash.

• Objective served.

>>> Working Capital :-

• Working capital is the capital invested in the current assets of an enterprise.

• Used to acquire current assets for the company

• Working capital is highly liquid.

• Not possible to convert into cash Can be converted into cash.

• Serves strategy oriented objectives Serves operational objectives.

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